EV Incentives Prioritised for High-Value-Added Vehicles

Industry Minister Agus Gumiwang Kartasasmita has stated that recipients of electric vehicle (EV) incentives will be directed towards products that provide high added value and are part of the national car or motorcycle programme. The Ministry of Industry is ready to support the Finance Ministry should it later issue an electric vehicle incentive policy.

“The focus of the incentive recipients for EV-based cars or vehicles, both four-wheelers and motorcycles, will certainly be products that create high added value in Indonesia, meaning strong structural deepening, but also, no less important, those that are part of the national car programme or the national electric motorcycle programme,” the Minister said in Jakarta on Thursday (6/8/2026).

As a technical ministry, he noted, his side is preparing aspects in line with the established policy. “And if later the government issues incentives, as conveyed by (Finance Minister) Mr Purbaya, we will certainly prepare the technicalities,” he said.

Regarding the possibility of incentives considering the domestic component level (TKDN), Minister Agus said his party is still awaiting the concept being prepared by the Ministry of Finance. “But whatever the corridor or concept prepared by the Ministry of Finance, we will certainly support it, and as a technical ministry we will certainly prepare based on what is stipulated in the PMK,” he stated.